December 29, 2017 / 10:52 AM / in a year

China regulator penalises 13 institutions over illegal bank guarantees case

BEIJING, Dec 29 (Reuters) - China’s banking regulator said on Friday it has punished 13 financial institutions for providing funds to China Guangfa Bank, imposing fines and confiscating illegal income totalling 1.34 billion yuan ($206 million).

The regulator has confiscated a total of 661 million yuan of illegal income and handed out fines totalling the same amount, according to a statement posted on the website of the China Banking Regulatory Commission (CBRC).

Guangfa Bank had provided illegal guarantees for corporate bonds issued by a Chinese phone maker, and sought to conceal the extent of the bank’s debts. The bonds defaulted in December 2016.

Earlier this month, the Guangzhou-based lender was given a record financial penalty by the China Banking Regulatory Commission (CBRC). ($1 = 6.5050 Chinese yuan) (Reporting by Beijing Monitoring Desk)

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